Royalty Pharma : Q1 2026 Financial Results Presentation

Published: 2026-05-06 07:36:14 ET RPRX

Published on 05/06/2026 at 07:36 am EDT

Q1 2026 Financial Results

May 6, 2026

Agenda

Key Highlights Pablo Legorreta Chief Executive Officer, Chairman of the Board

RsD Co-Funding Chris Hite Chairman, Partnering C Investments

Portfolio Update

Financial Results

Conclusion

QsA Session All presenters

Key Highlights

Pablo Legorreta

Chief Executive Officer, Chairman of the Board

Key Highlights RCD Co-Funding Portfolio Update Financial Results Conclusion 5

Strong business momentum in Q1 2026

Financial

Double-digit growth in Royalty Receipts (+13%) and Portfolio Receipts (+10%)(1)

Return on Invested Capital (ROIC) of 14.1%, Return on Invested Equity (ROIE) of 19.7% in LTM Q1 2026

Capital allocation

$1.25bn of announced transactions on 3 therapies ($528m of Capital Deployment)

Repurchased $50m of shares; grew dividend by 7% in Q1 2026

Portfolio

Positive phase 3 results for Revolution Medicines' daraxonrasib (pancreatic cancer), Cytokinetics' Myqorzo (nHCM), FDA approval of Denali's Avlayah (Hunter syndrome)

RCD co-funding agreement on

JCJ's JNJ-4804 (autoimmune)

Acquired royalty on Jazz and

BeOne's Ziihera (cancer)

Financial guidance

FY 2026 Portfolio Receipts expected to be $3,325m to $3,450m excluding new investments(2) ($3,275m to $3,425m previously)

Royalty Receipts growth of ~4% to 8% (+3% to 8% previously)

LTM: last twelve months; FDA: Food and Drug Administration; RCD: research and development; nHCM: non-obstructive hypertrophic cardiomyopathy

Royalty Receipts represent recurring cash inflows. Portfolio Receipts also include Milestones and other contractual receipts that are more variable.

Portfolio Receipts guidance excludes contribution from transactions announced subsequent to the date of this presentation.

Key Highlights RCD Co-Funding Portfolio Update Financial Results Conclusion 6

Delivering double-digit growth on average since IPO

(year/year growth; $ in millions)

+8%

+15%

+12%

+8%

+13%

+12%

$788

+13%

+11%

$811

+11%

$672

+17%

$856

+13%

+14%

+15% +12%

$887

-7%

+1G% +12% +11%

$445 $472 $482

+35%

$500

+14% +10%

+4% $537 $530

$462

+16%

$581

+G% +12%

+11% $584 $593

$511

+6%

$616

+G% +10%

+7% $637 $651

$545

$705

+11% $732 $729

$605

$371

Q1 Q2

Q3 Q4 Q1

Q2(2) Q3 Q4 Q1

Q2(2) Q3 Q4

Q1 Q2(2)

Q3 Q4

Q1 Q2(2) Q3 Q4 Q1

2020(1)

2021

2022

2023

2024

2025

2026

Portfolio $382

Receipts

$462 $472 $484 $524 $475 $587 $543 $605 $524 $597 $606(3) $656(3) $545 $637 $686(3) $717 $608 $735 $742 $839 $727 $814 $874 $925

Growth rates are presented on a pro forma basis. See slide 27 for definition and additional information.

Royalty Receipts in the second quarter are typically lower than the first quarter as royalties for certain products or franchises are tiered and typically reset at the beginning of the year. Thus, second quarter Royalty Receipts (reflecting first quarter sales) often include royalties on sales at the lowest royalty tier.

The 2022 and 2023 results are calculated on a pro forma basis to exclude Accelerated Receipts (as defined in the Credit Agreement) as if Amendment No. 5 of the Credit Agreement had taken effect on January 1, 2019.

Key Highlights RCD Co-Funding Portfolio Update Financial Results Conclusion 7

Expanding our global platform and capabilities

Strengthening our leadership team, global reach and AI-powered insights to support long-term growth

Strengthen ability to serve partners

Lead royalty

business in Asia

Build and implement AI

and data solutions

EVP: Executive Vice President; SVP: Senior Vice President; VP: Vice President; AI: Artificial Intelligence

R&D Co-Funding

Chris Hite

Chairman

Partnering C Investments

Key Highlights

R&D Co-Funding

Portfolio Update

Financial Results Conclusion 9

R&D co-funding agreements are a win-win solution

Risk sharing at scale

Enhances program ROI

Contra RCD treatment expands RCD capacity

Facilitates portfolio diversification

Large addressable market

Global biopharma 5-year cumulative RCD spend

Unlocks large new market of opportunities

Access to high priority clinical programs

Global RCD and commercial capabilities of partner

Deep diligence access drives high conviction

RCD: research and development; ROI: return on investment

Represents Visible Alpha estimates for RCD spend for profitable global biopharma from 2026-2030.

Key Highlights

R&D Co-Funding

Portfolio Update

Financial Results Conclusion 10

Majority of global biopharma have utilized R&D co-funding

Increased comfort with accounting treatment and growing recognition of benefits driving adoption

(Illustrative)

(% of global biopharma utilizing RCD co-funding)(1)

Market paused due to Growing comfort FASB formalizes accounting uncertainty with accounting accounting treatment

RsD co-funding proof-of-concept established

23%

55%

2016

2019

2022

2025

Future

2020(2)

Today(3)

FASB: Financial Accounting Standards Board; RCD: research and development Information presented above are based on Royalty Pharma internal estimates.

Global Biopharma consists of Pfizer, Merck, Bristol Myers Squibb, Lilly, Gilead, Amgen, AbbVie, Johnson C Johnson, Biogen, Regeneron, Alnylam, Vertex, Moderna, Teva, Novo Nordisk, AstraZeneca, GSK, Sanofi, Novartis, Roche, Takeda and Bayer.

Reflects global biopharma utilizing RCD co-funding over the 2012-2020 period.

Reflects global biopharma utilizing RCD co-funding over the 2012-today period.

Key Highlights

R&D Co-Funding

Portfolio Update

Financial Results Conclusion 11

Opportunity to scale business by partnering with global biopharma

(Illustrative)

RCD co-funding (global biopharma)

Other

Synthetic royalties (biotech) Pre-existing royalties

RCD co-funding

c y

ould significantl

scale RP Capital

Deployment

RsD co-funding (global biopharma)

Significant RP growth opportunity as market is large and underpenetrated; potential upside to Capital Deployment targets

Synthetic royalties (biotech)

Expect continued strong growth as successful biotechs increasingly use royalties as part of a diversified capital structure

Pre-existing royalties

Stable business of existing royalties with potential for long-term upside as RP establishes royalty market in China

2000's 2010's 2020-2025 Future

RP: Royalty Pharma; RCD: research and development

Key Highlights

R&D Co-Funding

Portfolio Update

Financial Results Conclusion 12

Recent R&D co-funding deals highlight breadth and scale of opportunity

Select Royalty Pharma R&D co-funding agreements, 2022-present(1)

Announcement

2026

2025

2023

2022

Transaction size

$500m(2)

Up to $500m(3)

Up to $250m(4)

Up to $125m(5)

Up to $425m(6)

Therapy

JNJ-4804

TEV-'408

litifilimab

TEV-'749

MK-8189

Indication

Autoimmune diseases

Vitiligo

Lupus

Schizophrenia

Co-funding

Phase 3

Phase 2b

(+ Phase 3 option)

Phase 3

Phase 3(5)

Phase 2b

(+ Phase 3 option)

RCD: research and development

In addition, Royalty Pharma announced an RCD co-funding agreement with Cytokinetics for CK-586 in 2024 for up to $200 million.

Royalty Pharma to provide $500 million of funding over two years.

Royalty Pharma to provide up to $75 million to fund a Phase 2b study in 2026 with option for up to an additional $425 million to co-fund the Phase 3 development program.

Royalty Pharma to provide RCD funding of $250 million over six quarters to support Phase 3 development.

Royalty Pharma provided $100 million of funding for the Phase 3 development costs. The Phase 3 trial for TEV-'749 read-out was positive and the U.S. Food and Drug Administration accepted Teva's new drug application in the first quarter of 2026.

Royalty Pharma provided $50 million to support Phase 2b development with the option to provide up to an additional $375 million to co-fund the pivotal clinical development program. Following the Phase 2b, Royalty Pharma will not be making any further investment.

Key Highlights

R&D Co-Funding

Portfolio Update

Financial Results Conclusion 13

Competitive price

Brand

reputation

Long-term horizon

Partnership

mentality

Scale and

focus

Royalty Pharma is well positioned to scale R&D co-funding

Deep relationships

Responsiveness

Flexibility on structuring

RCD: research and development

Portfolio Update

Marshall Urist, MD, PhD

Executive Vice President

Head of Research C Investments

Royalty funding agreement: Ziihera for HER2+ gastric & biliary tract cancer

Acquired portion of Zymeworks' royalties on Jazz and BeOne's Ziihera

Transaction terms

$250m upfront for low- to mid-single digit royalty(1); royalties cease at 1.65x multiple if achieved by end of 2033, or 1.925x thereafter

Addressing high unmet need

FDA accelerated approval for mBTC in November 2024; gastric cancer FDA submission in Q2 2026(2) where 5-year survival rate is <10%(3)

Positioned to become standard of care

Improved overall survival by 5-7 months at first interim analysis(3) in newly diagnosed gastric cancer with manageable safety

(Non risk-adjusted; $ in billions)

$2.5

$2.3

$2.0

$1.7

$1.5

$1.1

$0.7

$0.4

$0.03 $0.1

$2.8

Attractive returns

Transaction expected to deliver unlevered IRR in the low double digits

2025 2035

HER2+: human epidermal growth factor receptor 2 positive; mBTC: metastatic biliary tract cancer; IRR: internal rate of return; FDA: Food and Drug Administration

Royalty Pharma is providing $250 million to Zymeworks under a non-recourse royalty-backed note with repayments due from 30% of worldwide tiered royalties on Ziihera until fully repaid.

Jazz press release, April 27, 2026.

Jazz presentation (Zanidatamab: Pivotal Phase 3 HERIZON-GEA-01 Trial Results in Gastroesophageal Adenocarcinoma (GEA)), January 9, 2026.

Visible Alpha consensus sales for Jazz Pharmaceuticals and BeOne Medicines as of April 29, 2026.

Key Highlights

RCD Co-Funding

Financial Results

Conclusion

Portfolio Update

Revolution Medicines update: daraxonrasib Phase 3 results

Positive Phase 3 RASolute trial results(1) Unprecedented daraxonrasib OS benefit(1)

(Phase 3 RASolute 302 trial - overall population)

(Non-risk adjusted; $ in billions)

Interim analysis met all primary and key secondary endpoints in previously treated metastatic PDAC patients

Progression-free survival and overall

survival endpoints considered final

daraxonrasib generally well tolerated, with manageable safety / no new signals

Revolution Medicines intends to submit these data to global regulatory agencies, including FDA under a CNPV

13.2 months

~60%

reduction in risk of death

6.7 months

daraxonrasib chemotherapy

$10.7

2026 2035

PDAC: pancreatic ductal adenocarcinoma; FDA: Food and Drug Administration; CNPV: Commissioner's National Priority Voucher; OS: overall survival

Revolution Medicines press release, April 13, 2026.

Visible Alpha unadjusted consensus sales as of April 21, 2026.

Key Highlights

RCD Co-Funding

Financial Results

Conclusion

Portfolio Update

Positive developments across royalty portfolio in 2026

Key clinical events in 2026 Key regulatory events in 2026

Therapy

obexelimab

Indication

IgG4-RD

Event

Phase 3 results(1)

litifilimab

CLE

Phase 2 results(2)

daraxonrasib

2L metastatic PDAC

Phase 3 results(3)

Myqorzo

nHCM

Phase 3 results(4)

pelacarsen

cardiovascular disease

Phase 3 results(5)

deucrictibant HAE prophylaxis

Phase 3 results(6)

Trodelvy

1L mNSCLC

Phase 3 results(7)

litifilimab

SLE

Phase 3 results(8)

Therapy

Avlayah

Indication

Hunter syndrome

Event

FDA approval(9)

neladalkib

ALK+ NSCLC

FDA filing(10)

zidesamtinib

ROS1+ NSCLC

FDA approval(11)

TEV-'749

schizophrenia

FDA approval(12)

Trodelvy

1L mTNBC

FDA approval(7)

daraxonrasib

2L metastatic PDAC

FDA filing(3)

ecopipam

Tourette's syndrome

FDA filing(13)

obexelimab

IgG4-RD

FDA filing(1)

deucrictibant

HAE attacks

FDA filing(6)

1L: first-line; 2L: second-line; IgG4-RD: Immunoglobulin G4-related disease; CLE: cutaneous lupus erythematosus; PDAC: pancreatic ductal adenocarcinoma; nHCM: non-obstructive hypertrophic cardiomyopathy; HAE: hereditary angioedema; mNSCLC: metastatic non-small cell lung cancer; SLE: systemic lupus erythematosus; ALK+: anaplastic lymphoma kinase positive; NSCLC: non-small cell lung cancer; ROS1+: ROS proto-oncogene 1 positive; mTNBC: metastatic triple negative breast cancer; FDA: U.S. Food and Drug Administration

1. Zenas BioPharma press release, January 5, 2026. 2. Biogen press release, March 28, 2026. 3. Revolution Medicines press release, April 13, 2026 and research analyst estimates which forecast a daraxonrasib filing and launch in 2026. 4. Cytokinetics press release, May 5, 2026. 5. Novartis Q1 2026 earnings presentation, April 28, 2026. 6. Pharvaris Q4 2025 earnings release, April 2, 2026. 7. Gilead Q4 2025 earnings presentation, February 10, 2026. 8. Biogen Q1 2026 earnings presentation, April 29, 2026. 9. Denali press release,

March 25, 2026. 10. Nuvalent press release, April 7, 2026. 11. Nuvalent press release, January 12, 2026; Prescription Drug User Fee Act (PDUFA) target action date of September 18, 2026. 12. Teva earnings presentation, April 29, 2026. 13. Teva press release, April 29,

2026.

Key Highlights

RCD Co-Funding

Financial Results

Conclusion

Portfolio Update

Multiple pivotal readouts during 2026-2027

Important Phase 3 results to potentially unlock value for development-stage pipeline

~$180-$340m peak royalties

(all indications)(3)

2L PDAC

Phase 3 results (April 2026)

daraxonrasib

~$230m peak royalties

(all indications)(3)

nHCM

Phase 3 results (May 2026)

Myqorzo

>$150m peak royalties(3)

Cardiovascular disease

Phase 3 results (2026)(1)

pelacarsen

~$125m peak royalties

(all indications)(3)

Lupus (SLE)

Phase 3 results (2026)(1)

litifilimab

~$180m-$340m peak royalties

(all indications)(3)

2L NSCLC

Phase 3 results (2027)(2)

daraxonrasib

~$125m peak royalties

(all indications)(3)

Lupus (CLE)

Phase 3 results (2027)(1)

litifilimab

>$400m peak royalties

(all indications)(3)

Multiple sclerosis

Phase 3 results (2027)(1)

frexalimab

>$150m peak royalties(3)

Major depressive disorder

Phase 3 results (2027)(2)

seltorexant

2027 events

2L: second-line; PDAC: pancreatic ductal adenocarcinoma; nHCM: non-obstructive hypertrophic cardiomyopathy; SLE: systemic lupus erythematosus; NSCLC: non-small cell lung cancer; CLE: cutaneous lupus erythematosus;

1. Phase 3 results timing for pelacarsen, litifilimab (SLE, CLE) and frexalimab are based on marketer guidance. 2. Phase 3 results timing for daraxonrasib (2L NSCLC) and seltorexant are based on clinicaltrials.gov. 3. Peak royalties are calculated using peak sales based on the marketer guidance (the midpoint is used when ranges are provided) for frexalimab, pelacarsen, and seltorexant. Peak royalties for litifilimab, Myqorzo and daraxonrasib are based on peak sales from analyst research estimates. For daraxonrasib, lower end of peak royalties assume the required Revolution Medicines draw (Tranches 1 and 2); upper end peak royalties assume maximum draw scenarios (Tranches 1 through 5).

Key Highlights

RCD Co-Funding

Financial Results

Conclusion

Portfolio Update

Financial Results

Terrance Coyne

Executive Vice President Chief Financial Officer

Key Highlights

RCD Co-Funding Portfolio Update

Financial Results

Conclusion 20

Efficient model generates substantial cash flow to reinvest

% Portfolio

Receipts

Royalty Receipts(1)

Milestones C other contractual receipts(1)

+13% YoY

Recurring cash inflows of our royalty portfolio

More variable cash receipts

$887

$38 (25%) YoY

Portfolio Receipts

Payments for operating and professional costs

3.9%

Substantially all cash inflows of the business

Reflects cash savings from internalization of manager

$G25

+10% YoY

($36)

Adjusted EBITDA (non-GAAP)

Interest paid, net

Portfolio Cash Flow (non-GAAP)

G6.1%

78.0%

Measure of cash that can be redeployed into new royalties, to pay debt, or returned to shareholders

$88G

($167)

$722

Capital Deployment

($528)

Reflects cash payments during the period for new and

previously announced transactions

Share count(2)

557

Reduced by 21m from ~578m in Q1 2025

YoY: year over year

Amounts may not add due to rounding.

Reported net of legacy non-controlling interests to facilitate increased transparency of individual royalty economics and milestones.

Reflects weighted-average diluted Class A ordinary shares outstanding.

Disclaimer

Royalty Pharma plc published this content on May 06, 2026, and is solely responsible for the information contained herein. Distributed via Public Technologies (PUBT), unedited and unaltered, on May 06, 2026 at 11:35 UTC.